Jan 7 (Reuters) - U.S. stocks were lower on Thursday, but
off their session lows, as market volatility in China and a
relentless slide in oil prices unnerved investors, already
jittery after a shaky start to the year.

China allowed the biggest fall in the yuan in five months,
and Shanghai stocks were halted for the second time this
week after another brutal selloff tripped a new circuit breaker.

Global stocks, however, trimmed losses after the Shanghai
and Shenzhen stock exchanges said China would suspend the
circuit breaker as of Friday. The mechanism has been in place
the start of this year.

With Beijing accelerating the yuan's depreciation to make
its exports more competitive, investors fear China's economy is
even weaker than had been imagined.
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